Chip stocks fall with Nvidia after data center rev disappointment
Investing.com - UBS has upgraded Swire Pacific Limited (HK:0019) (OTC:SWRAY) from Sell to Neutral and raised its price target to HK$75.00 from HK$59.90.
The upgrade reflects the widening valuation discount to Swire Pacific’s underlying listed companies, which has increased from 19% in February 2025 to 31% currently, approaching UBS’s 30% target discount.
UBS also cited expected improvement in Swire Pacific’s credit metrics in 2026, driven by earnings growth from Swire Properties, which increases the probability of share buybacks after the current program ends in May 2025.
The investment bank raised its 2025-2027 earnings estimates for Swire Pacific by 7-11%, citing improved fundamentals in both the property and aviation businesses.
While UBS has not included potential buybacks in its current forecasts, the firm noted that Swire Pacific’s year-to-date underperformance relative to its listed underlying companies has created a more favorable valuation profile.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.